John T. Minor, V Minor, Bell & Neal 110 Battlefield Crossing Court Ringgold, GA (706)

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1 John T. Minor, V Minor, Bell & Neal 110 Battlefield Crossing Court Ringgold, GA (706) jminor@mbnlaw.com

2 Wills Trusts Powers of Attorney Heath Care Directives Medicaid Tips on Working With an Estate Planning Lawyer

3 To answer this question, let s answer another question: What Happens When You Die Without a Will?

4 Administration Any interested party may bring petition (including creditors!) Must serve heirs unless they sign acknowledgements Often, must publish notice in newspaper for one month before being sworn in as Administrator Often, must seek approval from Court to sell property or do other things Often, required to file periodic inventories and returns with the court

5 Must publish another newspaper ad after admitted May be required to post a Surety Bond with the court Distributions to minors create many problems (a guardian is often necessary) Distributions are set by law (to Heirs at law) Heirs are first your spouse and children (with spouse never taking less than one-third) or your descendants If no spouse or descendants, then to your parents If no parents, then your siblings Then to your nieces, nephews, and then to other family members If no blood relatives, then your property escheats to the State

6 First and Foremost Distribute your property the way you want Name an Executor Allow your Executor to serve without court intervention (sell property, require no bond, etc.) Direct distributions to minors (through trusts or otherwise) Name a guardian Tax planning Planning for Special Needs

7 Give to Charity Control the payment of debts and expenses In short, Estate Planning helps you Clarify your preferences Provide for Contingencies Eliminate needless expense Communicate with the next generation Avoid or resolve family conflicts or potential conflicts Note that probate is still necessary with a Will

8 Absolutely, but you should exercise extreme caution almost always, you get what you pay for Homemade Wills are usually counterproductive At the very least, an estate planning lawyer can ensure your will is properly executed (which is surprisingly difficult!) Language construction is particular with Wills Forms on the Internet/Computer Software/Office Depot Often too generic Even if they claim to be state-specific, they often are not

9 Even if you think your estate will not need to go through probate, you still need a Will Jointly Owned Property Beneficiary designations on accounts (example: Pay on Death accounts) Beneficiary designations on Life Insurance and Retirement Accounts Trusts

10 Essentially, a trust is a separate legal entity which holds your property The grantor of the trust gives a trustee property to hold in trust the trustee is bound to use and distribute the property only as instructed by the grantor in the written trust instrument (the document) Thus, when you die, if you have given all your property to your trust, you have no property which will need to go through probate

11 You still need a Will! Revocable Trusts do not protect your property in any way (creditors may still reach your property) May be more private (your wishes are not on record with the court) Can be used for other estate planning purposes Can be used to provide for individuals with Special Needs Property must be properly transferred to be effective

12 A Powerful Tool Allow you to name an agent to make financial and property decisions on your behalf Transfer or sell your property Access your accounts Pay your bills Can become effective immediately or upon the happening of an event (such as your incapacity) Can substitute for a conservatorship Expires upon your death

13 Probably the most important document of all Like a POA for Health Care purposes Allows you to appoint a health care agent Also acts as a living will so you may make your wishes known in advance, in writing Can prevent a guardianship, or if a guardianship is needed, allows you to name your preferred guardian Georgia has a new statutory form The form is extensive, but must be read carefully

14 Long Term Care for the elderly can easily cost $60,000 per year often much more Long Term Care Insurance Medicare versus Medicaid General SSI and Medicaid requirements Aged (65 or older), Blind, or Disabled Countable Income less than the limit during the year you apply Countable Resources less than the limit during the year you apply

15 2009 Medicaid Resource and Income Limits Income: $2,022 per month Resources: $2,000 if single / $111,560 if married Income concerns can often be handled through the use of a Miller Trust Resource Limits can only use a similar trust (called a Special Needs Trust) in certain circumstances But, these resource and income limits apply only to countable resources

16 What are not countable resources? Principle Residence One Vehicle Personal Effects IRAs Burial Plots, Burial Funds, Burial Spaces, Funeral Contracts, etc. Life Insurance Gifting Transfer Penalties Estate Recovery Medicaid Rules are extremely tedious be sure to consult with an attorney before resolving these issues

17 Do not be afraid to ask questions! Come prepared Lawyers generally charge by the hour even if they quote a flat fee, it will be based on the amount of time they estimate it will take to complete your estate plan Bring documents deeds, insurance information, financial statements, account ownership information, beneficiary information Know how your property (including real estate) is titled (how it is owned) Think about the goals you want your estate planning to accomplish but be open and flexible to suggestions

18 Be prepared to discuss uncomfortable topics (such as health issues, financial issues, etc.) Be sure to tell your attorney if someone in your family has special needs even if your attorney does not ask! Consider cost Quotes are difficult to give over the telephone most quotes are for a simple will which is difficult to define and often not what is needed Schedule an appointment to meet with your lawyer so that your estate plan can be assessed

19 John T. Minor, V Minor, Bell & Neal 110 Battlefield Crossing Court Ringgold, GA (706) jminor@mbnlaw.com